Buying your first home can be a difficult time, especially in these days of high house prices, and low job security. But don’t despair, I have prepared a few top tips to make the process as painless as possible for you! Read more »
Popularity: 10% [?]
Whether it’s selling your home or buying a home, more often than not you’ll come across a stage where you’d have to negotiate. Negotiation is the art of getting what you want at your terms and conditions. Of course, it isn’t that easy and it takes time and patience especially when it comes to real estate dealings. Read more »
Popularity: 8% [?]
The uses of land trusts are to control or purchase real estate, to protect confidentiality, to limit liability, to help with “DOS” clauses in some cases. Land trusts have been used since 1868 in one form or another and became recognized by statute or case law in many states. A land trust is a vehicle that holds real estate nothing more nothing less. Read more »
Popularity: 8% [?]
There was an ABC News story that came across my desk today on Real Estate Flipping. It was one of those, “this is where everyone is getting rich” stories that tends to send a whole bunch of “get-rich-quick-types” rushing out to buy investment property without so much as a clue as to how much work- or risk- is involved. ABC might as well have said, “Dot com stocks are back; buy Pets.com again.”
Having worked with a variety of investment properties over the past several years, let me first say YES it is possible to make a nice living working with investment properties. However, I’ve also met a lot of individuals who have failed miserably at it. In fact I’ve seen so many failures; I don’t even know where to start in discussing them…
One of the biggest mistakes I’ve seen people make is they spend time “researching” i.e. watching videos or reading the internet, but they never seem to seek advice from ACTUAL investors working in their local market. Buried near the bottom of the ABC article, it mentioned you should have a “home inspector, contractor, realtor, tax accountant and attorney to advise you.” Although I would add lender to that list as well, the point to be made is having a core group of experts from every aspect of the investment stage to help you should something go wrong can mean the difference between making a profit and losing your proverbial shirt.
From my experience, most would-be investors are afraid of looking �stupid� in front of other investors, or are afraid they will be perceived as competition. Trust me; successful investors do not see a first time neophyte as a threat. Most of you will fail so there is no need for the expert to feel angst by the presence of a novice. But believe me, it�s a whole lot less embarrassing to ask a stupid question of an experienced expert than to lose your home because you didn�t ask in the first place. And remember because laws and regulations vary from state to state, and city to city, the �great advice� you get from someone on the internet in California can land you in hot water in Missouri. For that matter, the differences between an established inner city and a budding subburb can be night and day.
The best advice, as well as the FIRST piece of advice I offer every �new� real estate investor or would-be rehabber is to seek excellent tax and legal council. When seeking advice of an accountant, research for a company or individual with experience in real estate. When it comes to home improvements and rehabbing, things like repairing a door verses replacing a door depreciate very differently having varying tax consequences. A knowledgeable tax advisor can be your greatest asset when Uncle Sam comes a callin’!
This is also true of your legal ally a.k.a. your attorney. Protect your current assets and minimize your exposure and vulnerability to liability should the unexpected occur- like someone becoming injured on your property, loss due to theft and possible items not covered under your insurance policy. Your attorney will guide you on an appropriate course of action be it in creating an LLC (Limited Liability Corporation) or other appropriate precautions to protect your best interests.
Along theses same lines, when you go to look for the rest of your core group of �experts� as you begin your endeavor into investment properties, seek out individuals who not only know their business, but have also owned investment properties themselves. For example, I run into residential real estate agents far too often than I care to reveal who are offering all sorts of bad advice to would-be investors because they are trying to find an investment property and don�t know the difference between an investment and a primary residence.
Not to beat my own drum, but my experience in these matters is first hand and once you�ve worked with investment properties you will realize it�s not like buying a home to live in. Think of it this way, a gynecologist is in fact a doctor, but would you go to him/her if you had a sore throat? It�s no different with real estate agents. Find an agent who has experience in investment properties, first hand, because you seek investment properties in a completely different approach than you do a home to live in (Again, another story, another day). The same is true of lenders because borrowing money on an investment property is extremely different than a primary residence- and finding out your lender didn�t know that after the project starts can break you.
If you really want to enter the world of investment properties, be certain of your goals and stay within those narrow parameters. If you think investment properties will be �fun� and a �bonding� experience with your teenager because of too many hours spent in front of the T.V. watching �Trading Spaces�, think again. Investing in real estate should be approached like any other investment. If the numbers look good on paper, proceed. If not, put on your tennis shoes and run like heck!
Article by Kimberly Shallenberger-Cameron of STLAgent.com.
Popularity: 14% [?]
The Empowerment of Owning Your Own Home
Purchasing a home is one of the most powerful and terrifying events of a person’s life. It is a challenge, but once this challenge is met with strategic planning, knowledge and excitement it becomes an investment. One that will change your financial future and bring more return than you ever imagined. The first step is finding a real estate agent with integrity and experience. The perfect agent will be one who fosters trust, believes in buyer education and offers emotional support. Over time seasoned buyers come to view these agents as partners in locating and analyzing the best investments available. Read more »
Popularity: 11% [?]
Homeowners who are seeking a property appraiser often ask “How should I choose which real estate appraiser to use?” When selecting a property appraiser, keep the following in mind: Read more »
Popularity: 6% [?]
I have seen home buyers and sellers less than satisfied with realtors who were not providing them the level of service they felt they deserved. If you take the time to find a good match, you may find your search for a home to be a rewarding experience. Here are some tips on evaluating a realtor.
1. If you are a seller, select a realtor who will advertise your property individually and distinctly.
2. A realtor must have a hot, up-to-date web site that changes to reflect the market.
3. Take into account the busy lifestyle of today�s professionals. Consider that most people use the internet to search for homes. Understand a realtor’s presence on the internet is crucial to their effectiveness.
4. If paying commission is a huge point with you, find a REALTOR who will be flexible.
5. Use a REALTOR with a national presence in the real estate market. Analyze the REALTOR�S web site as an indicator of this.
6. Choose a REALTOR with experience. If they are newly licensed, ask if the REALTOR is in a mentor program.
7. Check the REALTOR�S license by visiting your state�s department of occupational professionals web site. You can determine if the license is in good standing, read about any complaints or investigations, and see how long the REALTOR has been licensed.
8. Find a REALTOR who will research and obtain information from the source. This includes visiting a tax office or courthouse to research things like zoning or mapping topography of a home site.
9. Ask your REALTOR if they have access to more than one Multiple Listing Service (MLS) � if this is applicable in your area. Access to more MLS means increased opportunities to sell you property to qualified buyers or find the home that meets your criteria.
10. Open houses are not the way to sell homes, so do not be dazzled by a REALTOR who hosts them frequently. Often open houses attract neighbors and people not yet ready to buy.
If you take the time to find out more about the REALTOR you expect to use, you could land yourself a dream home, or a nice net gain on the home you are going to sell.
Article by Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia. Email: vonmor1@cox.net
Popularity: 11% [?]
It is the buyer’s right to seek an agent, and it is in their best interest to do so. Read more »
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Are you thinking of selling your home on your own, without the aid and professional advice of a qualified REALTOR? You may want to re-examine your decision to do so, because chances are good that you will not increase your net gain by selling your own home. Read more »
Popularity: 9% [?]
When it comes to selling property capital gains reinvestment can be an important strategy for homeowners and commercial and business owners. The Internal Revenue Service requires capital gains tax to be paid on the sale of all capital assets, including properties. Once the sale occurs the tax expense can be enormous, but with a little ingenuity capital gains tax can be avoided and the tax burden relieved. The sale of a home or an investment property can facilitate incredible steps forward for anyone in the real estate market. Planning, education and consulting the experts are the keys to increased buying power! Read more »
Popularity: 8% [?]
Don’t ever, ever lose your job! That’s right, it’s not your credit score or your assets or your equity or even Location, Location, Location that matter the most, it is whether or not you have an income stream capable of supporting your mortgage. Most people think of their home as the safest of investments that they have. It can be but only if you manage it correctly. If you have equity in your home, you are subject to the risk of loss of that equity at any time you can no longer afford to make your payments. Read more »
Popularity: 7% [?]
Homeowners facing foreclosure should be aware of unscrupulous lenders and scammers. Don’t get me wrong, most lenders and agencies are reputable and legit. However some lenders, commonly second mortgage issuers will use unethical practices that increase the risk of nonpayment by the borrower. These tactics may include lending a large amount in hopes that the borrower will not be able to keep up with the payments, charging outrageous interest, points or fees. They may also repeatedly refinance the loan without any real beneficial reason to the borrower. Homeowners facing foreclosure are often targets of these scammers because they are seeking any solution possible at the time. Read more »
Popularity: 6% [?]
In the wake of the incredible house price boom witnessed in most of the developed world over the past decade, a lot of ideas have sprung up as to how to value a house ‘fairly’. The reason for this is that traditional methods, such as working out house prices as a multiple of salaries, or perhaps mortgage affordability as a percentage of income, seem to have ’stopped working’ recently. Read more »
Popularity: 7% [?]
When you move in to a new apartment, the landlord may charge you more than the first month’s rent. Before you sign the lease, make sure you understand exactly what you’re going to be charged, and get it in writing. Read more »
Popularity: 7% [?]
Every year over 8 million homeowners are seeking help preventing foreclosure proceedings. This is a stunning 30 year high. Experts project that by 2006, 12 million homeowners will be teetering on the brink of foreclosure. Many homeowners are not aware that the can prevent foreclosure and save their house. Did you know that you can’t stop the proceedings up to an hour before the auction takes place? Read more »
Popularity: 6% [?]
